Franklin Templeton’s Strategic Expansion into Digital Assets

Franklin Templeton’s Bold Move into Digital Assets

JACKSON HOLE, WYOMING — Jenny Johnson, the CEO of Franklin Templeton, has been making waves in the asset management world since she took the helm of her family’s company in 2020. Under her leadership, the firm has boldly ventured into the digital asset arena, an area she believes is crucial for the future of finance. Johnson expressed her astonishment at how many traditional financial firms remain largely unaware of the significant scale and impact of Bitcoin.

During a thought-provoking discussion at the Wyoming Blockchain Symposium held in Jackson Hole on Tuesday, Johnson revealed that approximately 30% of her daily responsibilities revolve around exploring disruptive technologies. Her primary objective is to strategically position Franklin Templeton for the next generation, with digital assets being one of the two major trends she is keen on capitalizing. The other trend she emphasized is artificial intelligence.

“What’s astonishing to me,” Johnson remarked, “is that within traditional finance, there is a profound lack of awareness regarding the vast amounts of money and transaction volume associated with Bitcoin.” In fact, in 2023 alone, the Bitcoin (BTC) blockchain processed over $36.6 trillion in transactions, demonstrating a remarkable recovery from a challenging previous year. In comparison, the two leading payment networks globally, Mastercard and Visa, processed $9 trillion and $14.8 trillion respectively.

“There exists an entire ecosystem that seems to overlook what is, in reality, a parallel and massive ecosystem,” Johnson further elaborated.

However, it’s important to note that Mastercard and Visa are not entirely oblivious to the advancements in blockchain technology. Both companies have taken significant strides in recent years to integrate cryptocurrency payment solutions into their platforms. Visa, in particular, has conducted numerous trials to innovate new product offerings and has formed partnerships with a variety of crypto-native firms, including Circle and Solana, to solidify its presence in this evolving space. Similarly, Mastercard is in the process of launching a blockchain-based debit card to enhance its offerings.

Since Jenny Johnson stepped into the role of CEO, Franklin Templeton has emerged as a frontrunner among traditional financial asset managers in the digital asset domain. In 2021, the firm made history with its OnChain U.S. Government Money Market Fund (FOBXX), becoming the first fund to utilize a public blockchain for recording transactions and ownership.

Earlier this week, the company took another significant step by filing a proposal with the Securities and Exchange Commission to introduce a new exchange-traded fund (ETF), which will trade under the ticker symbol EZPZ. This fund aims to provide investors with exposure to a diverse array of digital assets, with Coinbase designated as the custodian for the fund.